London-based activist hedge fund firm Palliser Capital has acquired over 1% of SK Square, the largest shareholder in AI chip maker SK Hynix, and is advocating for reforms aimed at increasing the company's share value, according to a report by the Wall Street Journal.

The report cites sources familiar with the situation as revealing that SK Square, an investment arm of South Korean conglomerate SK Group, holds a significant stake in SK Hynix, a leader in high-bandwidth memory (HBM) technology crucial for artificial intelligence (AI) chips. Palliser’s stake, built over the past two years, places the hedge fund among the top 10 shareholders of the South Korean investment company, which has a market capitalisation of around $8.5bn.

Palliser is known for its activist approach, and its investment in SK Square signals its intent to push for strategies that will close the gap between the company's current valuation and the potential value of its stake in SK Hynix. The hedge fund is reportedly engaging in discussions with SK Square to explore measures that could drive growth and unlock greater shareholder value.